Question

Q. Which of the following statements is/are correct about Production linked incentives (PLI) scheme:

Select the correct code from the options given below:

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. None of the above

Answer 1

The correct option is A 1 only

Explanation:

• Statement 1 is correct. Under the scheme, cash incentives are provided based on incremental sales. PLI scheme: In order to boost domestic manufacturing and cut down on import bills, the central government has introduced the PLI scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units. Apart from inviting foreign companies to set shop in India, the scheme also aims to encourage local companies to set up or expand existing manufacturing units.

• Statement 2 is incorrect. The PLI scheme is focused on manufacturing products.